An introduction to Business F291

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  • Created by: EAPFH
  • Created on: 10-04-15 10:03

The Nature of Business

What Businesses Do;

  • Explain how businesses add value to resources to meet the needs of stakeholders.
  • Define Decision making
  • explain and apply opportunity cost
  • Businesses sell goods and services
  • Sell to individulas or other businesses

What Businesses Need;

  • Evaluate sources of finance (short,medium and long term)
  • Relationship between sources and legal identity
  • Understand Cashflow and its importance
  • Labour, Human resource planning; relationship between orgasnisation objectives and human resources; work-force planning; recuitment, selection, induction, training, severance
  • Market information, research and analysis
  • Data collection methods; Primary and secondary.
  • Limitations od sampling, analysis of competition
  • Customers and suppliers
  • Organisational managerial coordinating behavioural activities
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The Nature of Business II


  • to owners and stakeholders 
  • Do NOT need a detailed knowledge of social and corporate responsibility.
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Classification of Business

Economic sector;

  • Primary, secondary and tertiary sectors


  • Calculate, analyse and interpret typical measures. (Turnover, profit and employees)
  • Economies of Scale and diseconomies of scale

Legal structure;

  •  understand sole trader, partnership, public limited company, public limited company, franchises as types of businesses.


  • Understand the difference between public and private ownership. 
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Corporate Objectives

  • The central nature and role of objectives at corporate and departmental level; different types of objective and their changing nature; Risk, reward and ownership and entrepreneurship.


  • BE able to analyse and explain reasons for conflict between a companies stakeholders.
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Other Influences

The Market

  • impact of the dynamic and challenging marketplace; describle and explain factors influencing supply
  • Understanding of the interaction of supply and demand equilibrium, explain the effects of excesses and shortages
  • Understanding of different market structures, impact of competition.

Technological Changes

  • Opportunities and Threats resulting from technologicial change, new products and production methods

Social and Cultural

  • Demographic changes, consumer and employee patterns and influences of other stakeholders

Moral and ethical

  • Recognise and assess possible conflict in addressing different perspectives
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